Chap. 107.—An ACT to amend and re-enact Section 91 of the Tax Code of Vir-
ginia, as amended, in relation to the taxation of bank and trust company stock ;
and to amend: Section 97-a of the Tax Code of Virginia, in relation to branch
banks in towns so as to include within its provisions branch banks in cities.

{H B 85]
Approved March 6, 1946

Be it enacted by the General Assembly of Virginia:

1. That section ninety-one of the Tax Code of Virginia, as amend-
ed, and section ninety-seven-a of the Tax Code of Virginia, be amended
and re-enacted, as follows:

Section 91. Rate of taxation of bank stock; disposition of assess-
ment lists by commissioner of the revenue; limited city and town taxa-
tion of bank stock.—It shall be the duty of the commissioner of the
revenue as soon as he receives such report to assess upon each stock-
holder upon the taxable value of the shares of stock owned by him a
tax at the rate of one dollar on each one hundred dollars of such value
of such stock. The said tax shall be in lieu of all other taxes whatso-
ever for State, county or local purposes upon the said shares of stock.
The commissioner of the revenue shall certify three assessment lists,
transmit one to the Department of Taxation, one to the bank and retain
one. The assessment list so transmitted to said bank shall be notice to
the bank of the tax assessed against its stockholders and each of them,
and shall have the legal effect and force of a summons upon suggestion
formally issued and regularly served. The tax assessed upon each stock-
holder in said bank shall be the first lien upon the stock standing in his
name and upon dividends thereof due and to become due, no matter in
whose possession found, and shall have priority over any and all liens by
deeds of trust, mortgages, bills of sale or other assignments made by the
owner or holder, and take priority over all liens by execution, garnish-
ment or attachment process sued out by creditors of the stockholders.
The bank shall hold the dividend or other funds belonging to the stock-
holder and in its custody at the time the assessment list 1s received or that
thereafter shall come under its control, and apply the same to the pay-
ment of the tax assessed, and when thus applied shall be acquitted and
discharged from all liability to the stockholder for the money so disbursed.

Any city in this State in which any bank is located, and any incor-
porated town in this State in which any bank is located, may, by ordi-
nance, require such bank to deliver to the commissioner of the revenue,
or other assessing officer of such city or town, a copy of the report which
such bank 1s required by this chapter to furnish to the commissioner of
the revenue of the county or city, and any such city may impose a tax
not to exceed forty per centum of the State rate of taxation on each one
hundred dollars of the taxable value of the shares of stock in such banks
so located in such city, and any such town may impose a tax not to ex-
ceed eighty per centum of the State rate of taxation on each one hundred
dollars of the taxable value of the shares of stock in such banks so lo-
cated in such town; and it shall be the duty of the commissioner of the
revenue, or other assessing officer of such city or town in which such
hanks are located, to extend the said tax against the stockholders at the
rate levied by the council or other governing body of the said city or
town.

Any incorporated town in this State in which is located a branch
of a bank which bank is located in any city in this State, may, by ordi-
nance, require such bank to deliver to the commissioner of the revenue,
or other assessing officer of such town, a copy of the report which such
bank is required by this chapter to furnish to the commissioner of the
revenue of the city, and any such town may impose a tax not to exceed
forty per centum of the State rate of taxation on each one hundred dol-
lars of such proportion of the taxable value of the shares of stock in
such bank whose branch Is so located in such town as the deposits through
such branch bears to the total deposits of the bank as of the beginning
of the tax year; and it shall be the duty of the commissioner of the reve-
nue, or other assessing officer of such town in which such branch is lo-
cated, to extend the said tax against the stockholders at the rate levied
by the council or other governing body of the said town.

No tax shall be assessed or paid on the shares of any preferred stock
issued by any bank in this State sold to the Reconstruction Finance Cor-
poration while owned and held by it.

This section, as hereby amended, shall be in force and effect on
and after January first, nineteen hundred forty-seven.

Section 97-a. Branch banks in cities and incorporated towns.—
In the event any city or incorporated town in this State has imposed
the tax authorized by this chapter for any tax year and the bank on
whose stockholders the tax has been imposed by such city or town has
one or more branches located in another city or town or in other cities
or towns in this State, the council of the city or town which imposed the
tax shall in that year pay each city or town in which any such branch
is located a sum equal to forty cents on each one hundred dollars of
such proportion of the taxable value of the shares of stock in such bank
whose branch or branches are so located in such city or town as the de-
posits through such branch or branches in such city or town bear to the
total deposits of the bank as of the beginning of the tax year.

This section, as hereby amended, shall be in force and effect on and
after January first, nineteen hundred forty-seven.